In respect of each year the South African Sugar Association shall determine the gross proceeds from the sale of production, which shall be the total of—
| (a) | the proceeds of local market refined sugar, calculated by multiplying the tonnage of such sugar produced and estimated to be produced during the year, by the weighted average notional local market price of refined sugar applicable during that year; |
| (b) | the proceeds of local market brown sugar, calculated by multiplying the tonnage of such sugar produced and estimated to be produced during the year, by the weighted average notional local market price of brown sugar applicable during that year; |
| (c) | the proceeds of export sugar, including high test molasses, received by millers from Sasexcor, calculated by multiplying the tonnage of such sugar, including the sugar equivalent as determined by the South African Sugar Association of high test molasses produced for export and the local market during the year, by the net average export price per ton of all export sugar produced during the year, and for which purposes— |
| (i) | the net average export price shall comprise the net free alongside ship or free on board proceeds of such export sugar including any polarisation awards and quality bonuses or penalties to which shall be added other income applicable to export sugar such as, inter alia, address commission, despatch money and interest and from which proceeds shall be deducted any other costs or charges applicable to export sugar, excluding those which comprise industry obligations and any adjustment, in respect of a previous year, referred to in sub-paragraph (ii); and ( |
| (ii) | the final determination of export proceeds for each year shall be made by the South African Sugar Association not later than 31 March in each year and, if certain components of proceeds require to be estimated in order that the final proceeds may be so determined, any differences between the actual and the estimate of such components shall be brought to account as an adjustment in the calculation of the net average export price for the following year; |
| (d) | the net amount of any adjustment in respect of a previous year, resulting from the differences referred to in sub-paragraph (c)(ii) between the estimated and actual amounts of any components of the export proceeds; and |
| (e) | the proceeds of final molasses including refinery molasses, produced and estimated to be produced during the year, as determined by the South African Sugar Association; which proceeds represent— |
| (i) | proceeds from local market sales of molasses and the value of molasses utilised by millers, based on the notional local market price of molasses; and |
| (ii) | proceeds from export market molasses being the total realisation of export market molasses sold, less costs of distribution, handling, storage and transport. |
